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Short Sales-Think About The Big Picture! Can You Really Sell This Property?

"Please list my property...I'm behind on my payments and I am not sure what to do!"

As I asked my series of questions, I got the feeling...I won't be listing this property..not because I can't.... simply because I won't due to disservice..due to discrepancies....and due to untruths.

Now the particular property that I am talking about is not a house...but a condo. A few that are short sales and a few foreclosures but the rest are sellers just wanting to sell..but the odds are against them.

When there are 18 units available in one complex and you add another to the mix..with market times as long 203 days and there hasn't been a sale in a few years...I think of the big picture and ask myself can I really sell this property? Nope..I really don't think so..and truly as a short sale seller I would be doing you a disservice.

OK, first hurdle..if there were fewer properties...and if I didn't have to find a cash buyer only....and if I talk to the lender...I may get the pricing down...but there is a good chance not enough...when you owe double of fair market value.

Next hurdle-as I listened to the seller and asking them a few basic questions...I got the feeling...that maybe they were not sure which property was their homestead...as a matter of fact..they own a few properties...and they made a very big mistake..when their tenants moved out they told the bank they actually live in the property. I detect a few discrepancies and a few untruths..

When I inquired about assets...there was a hesitation...as a matter of fact..that issue was skirted by the potential seller as quickly as possible. These things are important if your intention is to sell the property.

Within 6 minutes I can tell whether I am going to list a short sale property...not because of my great intuition but with skills...ask questions...probe..and get the seller to talk to you and then you will be able to make a decision.

At the end of the conversation...I knew...my best advice to them...call the lender see if they can help you...ask for a loan modification because in the State of Florida..they are alive and lenders are doing it. I know people who have received them. Adjusted interest rates and lower payments...and the amazing thing...now you are current.

When it comes to short sales I think about the big picture...and I ask myself...with all the time, energy and investment I will have to put into this particular listing...will I have a shot and be able to sell this property?

How about you? Are you selective when you take a short sale listing?

Midori Miller is a licensed real estate associate with CENTURY 21 Sundance Realty, Real Estate Trainer and Manager. If you are interested in a career in real estate please contact me! All calls and inquiries are confidential. CENTURY 21 Sundance Realty is located in Volusia County with 3 office locations to better serve the public. Daytona Beach, Ormond Beach and Ormond by the Sea. midorimiller@yahoo.com

Posted by Florida Real Estate Trainer | Daytona Beach After School Training | Midori on 09/24/2008 07:15 AM

Comments (11)

Short Sales in the Training Channel

short sales, can you sell this property, the big picture, cash buyers only, condos, daytona beach florida training, midori miller

Originally posted at: Daytona Real Estate Training: Short Sales-Think About The Big Picture! Can You Really Sell This Property?

Post is included in group: All Things Florida
Post is included in group: ETHICS and the REALTOR
Post is included in group: Realtors®
Post is included in group: Short Sale REALTORS®
Post is included in group: The Ninety-ninth Percentile

11 Comments on Short Sales-Think About The Big Picture! Can You Really Sell This Property?

SEP

2008

Midori the picture you have painted here does not look good . A seller committing fraud is a very big no no. I can see why you would want to stay clear of that.

Midori: Short sales require some very specialized skills and business systems. For an agent/broker to be successful at them requires plenty of knowledge, skill and networking, plus the intuition that you mention to ferret out sellers that will pull you into a situation that may damage your reputation or worse. I have been VERY reserved about seeking this business because I have seen so many agents waste their time and worse, giving a seller false hope.

I think that what I'm hearing is most of the people I talk to just want out and don't even want to try to apply to modify but they also tell me when they call they are told they can't anyway...I'm not taking on anymore right now and definitely ones with two loans with two different lenders...wast of time. Your story sounds a bit strange to me as well.

Midori - there have been many turned downed and unfortunately from previous clients. When the words enter the conversation, "short sale and foreclosure", it's an uphill battle in my opinion. The marketing involved, time invested and uncertainty of how the lender is going to cooperate or not cooperate is a pretty clear picture for me. I feel horrible for those homeowners in this terrible predicament, it breaks my heart. Now add 'one' discrepancy and it's a clear path to a "Sorry, I can't help you"... You did the right thing!

Midori, I'm being selective on listing any properties, short sale or not. Last month, I was approached by someone and asked to list a house. The seller had taken a $60K home equity line out to "go shopping". I'm not kidding. No, that money was not invested back into the house. So, she owed $60K more than the house could possibly sell for. I suggested we try renting it out. She said that would be too much trouble and just wants to give it back to the bank. I'm not taking overpriced listings anymore, just to see what happens. That is a waste of my time, energy and marketing money. I want listings I can sell, not ones that will drain me. I suggested she contact someone else.

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I have a couple short sale listings right now, but I talk to a seller the other day who had two different homes to sell and they were not in good shape at all. They thought sinced they had owned them for a while that they should be able to sell them at market value, plus they are not in the best area, so I did not want that listing.

I new to short sales, and I am learning as much as I can about the process, but my gutt just told me that I would have a hard time getting those homes sold. Thank you for sharing.

You seem very knowledgable in this area, please check out this post What is the right way to work short sales?, your input will be greatly appreciated.

Midori, I too turn down short sale listings quite frequently. The number one reason is their hardship. If it ain't legit I move on. I also won't list a tenanat occupied property or one with 2 mortgages from two different lenders. In this market we have to chose our business wisely.

These short sales are the bane of our existance.

We had a home listed in MD at a good price for a semi luxury home. The onwers were not behind in payments but knew she had to sell. The house had been vacant for over a year.

Then, BOOM, another listing, same square feet, same community, same lot size, etc. came on the market for 2/3 the price.

We rented the home.

They'll lose a few hundred every month and hopefully they can sell next year.

Midori, while I'm not a realtor and involved in selling homes, I just had to say I like your style. I think nothing beats being honest with a client or potential client and providing them advice on things they can do but not fooling them or even yourself by taking on something you just know you can't provide the services they are looking for. It shows you are a true professional! Thanks for subscribing to my blog - I look forward to corresponding with you! Have a great day. ~ Anne Marie

I know hundreds if not thousands of real estate agents who would not turn down short sales even though they don't have a clue on what they are doing. Like you said,you need to get the sellers to talk to you probe.... Thanks for sharing this post. And thanks for accepting my Twitter invitation. I am still learning about Twitter. Great post.

SEP

2008

Your choice was the wise path to take. If you see no logical way you can sell it...you are not doing yourself or the owner any favors. In a way...placing the home on the market is just an act of desperate, false hope. Additionally...some banks will require the home owner to place the home on the market before they will work with them. I don't understand that mentality...but hey...what do I know? GBU!

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Florida Real Estate Trainer | Daytona Beach After School Training | Midori

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